In the new issue of Regulation, economist Pierre Lemieux argues that the recent oil price decline is at least partly the result of increased supply from the extraction of shale oil. The increased supply allows the economy to produce more goods, which benefits some people, if not all of them. Thus, contrary to some commentary in the press, cheaper oil prices cannot harm the economy as a whole.

Two long wars, chronic deficits, the financial crisis, the costly drug war, the growth of executive power under Presidents Bush and Obama, and the revelations about NSA abuses, have given rise to a growing libertarian movement in our country – with a greater focus on individual liberty and less government power. David Boaz’s newly released The Libertarian Mind is a comprehensive guide to the history, philosophy, and growth of the libertarian movement, with incisive analyses of today’s most pressing issues and policies.

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Archives: 03/2009

Yesterday I was invited to Pajamas TV to discuss the increasingly violent situation in Mexico, where the drug-related death toll continues to skyrocket. The other guest was journalist Matt Sanchez.

The discussion rapidly turned into a debate with Sanchez on the merits of drug legalization as an alternative to the current mayhem. If you’re interested in the topic, the video is available here, and the audio here.

I am disappointed to hear the health reform conversation devolve once again into a contrived debate about a single payer, government-run health system. This is an old dispute about “socialized medicine” and one that has already been settled in the minds of a critical mass of policymakers.

A couple of things strike me about his post.

First, this debate is obviously about socialized medicine, and to argue anything else is absurd. We have a president who advocates single-payer. That president just held a health care summit to which he invited other single-payer advocates, but not a single free-market advocate. As I explain in this paper, all the bluster about “public-private partnerships” is an intellectually dishonest smokescreen. Nichols and other members of the Church of Universal Coverage hate the term “socialized medicine” not because it inaccurately describes their policies, but because it accurately describes their policies and rankles a large segment of the American public. Rather than adjust their policies, they are trying to convince the public that policies generally considered socialist really aren’t.

Second, this “old dispute” obviously has not been “settled in the minds of a critical mass of policymakers.” If that mass of opinion were truly critical, then (by definition) the fact that some are crying “socialized medicine” wouldn’t bother Nichols at all.

I think I’ll shoot my friend an email and invite him to speak at a Cato Institute policy forum where we can discuss whether President Obama is trying to move us closer to socialized medicine.

People who support expanded federal intervention into areas such as energy and health care naively assume that policymakers can make economically rational and efficient decisions to allocate resources. They cannot, as a Washington Post story today on FutureGen illustrates.

The story describes the political battle over the location of a $1.8 billion ”clean coal” plant. I don’t know where the most efficient place to site such a plant is, or if such a plant makes any sense in the first place. But the story illustrates that as soon as such decisions are moved from the private sector to the political arena, millions of dollars are spent to lobby the decisionmakers, and members of Congress are hopelessly biased in favor of home-state spending regardless of what might be best for the national economy as a whole.

President Obama has promised to ramp up spending on such green projects. So get ready for some huge political fights over the big-dollar spoils, and get ready for some monsterous energy boondoggles.

The Supreme Court previously granted certiorari to the appeal of Ali Saleh Kahlah al-Marri, the only enemy combatant taken into custody domestically and detained in a military brig. The Court of Appeals for the Fourth Circuit held that he could continue to be detained as an alleged al Qaeda operative without trial. The Supreme Court reversed its decision to hear the case today.

The Obama administration moved him back into the civilian criminal justice system, and denied that it was doing so to keep the lower domestic detainee precedent intact. It argued that denying review while vacating the Fourth Circuit’s decision would serve the ends of justice. Apparently, the Court agreed.

As I have saidbefore, domestic counterterrorism is a law enforcement task, not a military one. The Washington Post and New York Times both wanted the Supreme Court to hear the case and rule that domestic detention is unconstitutional.

Obama’s actions seem to indicate either a lack of interest or a disagreement with the sweeping power claimed by President Bush, that presidents can simply whisk off any person in the U.S. — including citizens — to a military prison without a trial. But now that the Supreme Court has declined to rule on the executive’s claims in this case, we will not have the benefit of a Supreme Court precedent repudiating the executive’s overreach. Whether or not Obama tries to repeat what Bush did, another president will likely try to do it again. Not good.

This week, education secretary Arne Duncan referred to DC public schools as a district with “more money than God.” Perhaps he was thinking of the $24,600 total per-pupil spending figure I reported last year in the Washington Postand on this blog. If so, he’s low-balling the number. With the invaluable help of my research assistant Elizabeth Li, I’ve just calculated the figure for the current school year. It is $26,555 per pupil.

In his address to Congress and his just-released budget, the president repeatedly called for efficiency in government education spending. At the same time, the Democratic majorities in the House and Senate have been trying to sunset funding for the DC voucher program that serves 1,700 poor kids in the nation’s capital. So it seems relevant to compare the efficiencies of these programs.

According to the official study of the DC voucher program, the average voucher amount is less than $6,000. That is less than ONE QUARTER what DC is spending per pupil on education. And yet, academic achievement in the voucher program is at least as good as in the District schools, and voucher parents are much happier with the program than are public school parents.

In fact, since the average income of participating voucher families is about $23,000, DC is currently spending almost as much per pupil on education as the vouchers plus the family income of the voucher recipients COMBINED.

So Mr. President and Secretary Duncan, could you please sit down with Democratic leaders in the Senate before next Monday’s vote on an amendment to keep funding the DC voucher program, and reassert to them your desire for efficiency and your opposition to kicking these children out of a program that they depend on?

Here are the details of, and sources for, the DC education spending calculation:

Excluding preschool, higher education, and charter schools, the main education expenditures in the District are as follows:

John Walters, former director of the White House Office of National Drug Control Policy, turns in a rambling and at times incoherent defense of the current war on drugs in today’s WSJ. There are many points worth picking apart, but this line of reasoning, loosely speaking, was my favorite:

What is the alternative to the progress we are making? We have made the kind of compromises with alcohol that some suggest making with illegal drugs…

Today there is terrible violence in Mexico… The drug trade is a tool, not the cause of these violent criminal groups. Making it easier to produce and traffic drugs will strengthen, not weaken, these terrorists.

Right. Because we have all of these beer distributors and liquor-store owners running around the country kidnapping folks, killing judges, prosecutors, and journalist and generally terrorizing the populace.

I shudder to imagine the damage to our society were the illicit drug trade conducted in a strict regulatory framework reflective of our alcohol and medical supply distribution systems.

At yesterday’s White House Summit on Health Care Reform, President Obama had this to say:

If there is a way of getting this done, where we’re driving down costs and people are getting health insurance at an affordable rate and have choice of doctor, have flexibility in terms of their plans, and we could do that entirely through the market, I’d be happy to do it that way.

Of course, as my colleague Michael Cannon points out, no one who supports free market proposals to drive down costs and give consumers greater choice of providers and insurers was actually invited to the summit.